Challenges awaiting Federation Council

“Federation Council has undertaken significant investment into its roads and related infrastructure network, however there remains a significant challenge in managing these assets with current revenue levels.”

Council Mayor Pat Bourke made the comment last week as council unanimously adopted its draft 2021/2022 budget at an extraordinary meeting on May 4.

A rate increase of 8% is proposed in the budget – the state-wide rate peg of 2% plus a 6% special rate variation (SRV) as ratepayer contribution to Corowa’s $10.2 million aquatic centre sought by council for which council expects a favourable decision within one week.

The budget, together with other documentation relating to long-term plans, are on public exhibition with public meetings throughout the Federation Council area scheduled from May 10 to May 26. After considering feedback at the public meetings, any submissions and the decision on its 6% SRV, council will adopt a 2021/2022 budget at its June meeting.

Mayor Bourke said council, as a business, has experienced rapid changes and growth since its creation in 2016, with both former Corowa and Urana Councils having historically low rate bases and disproportionate asset bases to population levels.

“These challenges include a road network of 2322 km of roads broken into 964 km of sealed roads and 1,358 km of gravel roads,” he said.

Council understands very clearly where financial risks exist and has a plan for the next 10 years to ensure the council continues to provide a high level of services to the community according to Mayor Bourke.

“Our long-term plan relies upon ensuring our services are efficient and that we plan for the maintenance of the existing assets,” he said.

“While the merger funding has delivered some excellent facilities for our community, we need to ensure we can afford to maintain and operate them, and we can’t afford to keep buying new facilities without a revenue source to operate them.

“Over the next 12 months council is committed to engaging with the community to discuss an array of options on how council increases its revenue to meet community expectations.”

Response to councillor’s questions

At last week’s extraordinary meeting, Cr Fred Longmire asked if the 10-year plan was locked in, particularly considering the election of councillors in September this year.

Council’s director corporate and community services Jo Shannon said the forthcoming budget will be locked in for direction and while she said the 10-year plan isn’t, it does provide a guide to council’s operations and helps the organisation meet community demands for services and infrastructure by maximising what it can achieve with its available resources.

Cr Longmire mentioned the large increase in the value of farming land in recent times, saying “it’s gone mad” with a lot being “driven by outside money and not family farms buying their neighbours”.

“The other side of the equation is they want to see better amenities, especially their roads,” he said. “If we’re going to over-spend, we need to convince them we’re going to pull back on expenditure.”

Cr Longmire’s previous criticism of council for not giving priority to a road near Balldale was not shared by fellow councillors and his claim that council was over-spending by $1 million was disputed by Ms Shannon and Mayor Bourke.

The director corporate and community services said council was tracking in service delivery against budget, was not aware of any $1 million over-spend and would provide a report for council accordingly. The mayor said if one takes depreciation out of the equation, council has actually under-spent.

Council rate income is 46% residential, 44% rural and 10% commercial; relies on outside (grant funding) money for substantial project work.

“Road construction requires a lot of money,” Mayor Bourke said. “We rely on outside finance (Federal and State Government grants).

“I see the challenges. Council is continually working on initiatives and strategies focused on improving its long-term sustainability.

“Key to this is the delivery of the recommendations and action plans developed through the merger-funded Asset Management and LongTerm Financial Planning Services Model – completed in the 2019/20 financial year.

“The objective of this project was to integrate council’s asset management planning and wholeof-life costings into service costings to enable more robust long-term financial planning to be undertaken. This work is continuing.”

He said pressures coming on council and not in everyone’s faces are things like the NSW Fire Levy “which is really important, especially for our rural communities”.

“You get a fire in those paddocks at harvest time you need that protection in place. Our farmers need that protection.” The fire levy for council for 2021/2022 is $567,000.

In its 2021/2022 budget, council forecasts revenue of $42 million against $43.2 million expenditure, projecting an operating deficit of $1.2 million.

Federation Council’s 2021/2022 budget contains $16M in capital projects and will continue to deliver $6.5M in road works, and $5.8M on its sewerage and water network. Mayor Bourke said council’s budget is delivering on the improvement to roads and the community facilities that the community expressed their requests for in the development of the ‘Community Strategic Plan – Our Community Our Opportunity’, developed under extensive community consultation in 2017.

“Since the formation of Federation Council, council has worked extensively to deliver a range of new community infrastructure projects, as well as complete a monumental number of internal system upgrades and projects to provide a strong foundation for the new council moving forward,” he said.

“Council as a result of the $10 million dollar Stronger Communities Fund (merger funds) as well as many other grants since then including from the Stronger County Communities Grant Program, COVID Stimulus, Drought Funding and other grants, has invested in many new, and or upgraded community assets right across the Federation Council region.

“These include skateparks, tennis and netball courts, boat ramps, extensive playgrounds, a new $10.2 million dollar year-round pool in Corowa and the list goes on. This is also enhancing the areas’ reputation for liveability greatly.”

Council’s General Manager Adrian Butler said prior to 2012, Local Government Councils prepared three or four-year plans and has since welcomed 10-year plans for “a strong roadmap” for where councils want to aspire.

Mr Butler referred to “the massive capital works program” involving many major projects achieved by Federation Council emanating from merger funding and, notwithstanding the current, major Corowa Saleyards upgrade project, was looking forward to “a slower pace and back to core work”.

The General Manager complimented Ms Shannon and her team in preparing all the documents before council, for the next decade.

It was a view shared by Cr Paul Miegel who congratulated Ms Shannon and her finance team. “We have a good game plan,” he said. “The first quarter is going to be tough.”

Mayor Bourke agreed. “It will be a tough time but a good time. I’m confident we’ll come out together.” At the mayor’s suggestion, Ms Shannon received a round of applause, from all councillors.

Public meetings regarding council’s draft budget were held in Corowa on Monday and in Howlong last night.

Further meetings are as follows:

- Thursday 13 May: Paradise Palladium Theatre,

Morundah - 5.30pm - 7.30pm.

- Monday 17 May: Mulwala Council Office &

Library - 5.30pm - 7.30pm.

- Thursday 20 May: Urana Council Chamber 5.30pm - 7.30pm.

- Wednesday 26 May: Memorial Hall Oaklands

- 5.30pm - 7.30pm.

To register your interest in attending an upcoming budget community engagement session, or to provide feedback on the draft suite of documents visit Council’s website www.federationcouncil.nsw.gov.au